correction
noun
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Definition of correction
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Other Words from correction
, -shə-nᵊl \
adjective
Examples of correction in a Sentence
Recent Examples on the Web
In a chat with USA TODAY, Rodman has a couple of corrections on points made in the film, which aired Monday (available now on demand via the ESPN app and on ESPN+ on Oct. 9. — Bryan Alexander, USA TODAY, "Dennis Rodman corrects 'For Better or Worse' doc over Madonna locker-room visit, Snipes' hair," 11 Sep. 2019 The sudden change of fortune for Mr. Ghani in no way means easier times ahead for Afghanistan, even if the interruption of the peace efforts is seen by many of its critics as an opportunity for course correction. — Mujib Mashal, New York Times, "In Trump’s Taliban Snub, a Shift of Fortune for Afghanistan’s President," 10 Sep. 2019 The letter requires Juul to submit a plan of correction within 15 business days. — Jamie Ducharme, Time, "Juul Illegally Claimed That Its Products Were Safer than Cigarettes, FDA Says," 9 Sep. 2019 The lawsuit was filed in 2018 against Dean Williams, the commissioner of corrections under then-Gov. — James Brooks, Anchorage Daily News, "Alaska will pay $100,000 and change procedures to settle lawsuit over treatment of Muslim inmates," 6 Sep. 2019 The Testaments, then, is both a novel and an act of correction. — Sophie Gilbert, The Atlantic, "The Challenge of Margaret Atwood," 5 Sep. 2019 County officials said they were forced to make the cuts due to inadequate funding by the state for community corrections. — oregonlive, "Multnomah County commissioners approve $2.6 million in public safety cuts due to reduced state funding," 30 Aug. 2019 The state Department of Corrections, by law, is required to conduct an actual cost study of community corrections every six years. — oregonlive.com, "Multnomah County officials sound alarm on inadequate state funding for jail deputies, probation officers," 27 Aug. 2019 The touch screen works, but a polished touch screen implementation has a good amount of error correction built in, and that is not present in this build. — Ron Amadeo, Ars Technica, "Turning the Nintendo Switch into Android’s best gaming hardware," 15 Aug. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'correction.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for correction
correction
nounFinancial Definition of correction
What It Is
A correction refers to a price decline of at least 10% of any security or market index after a temporary increase in market prices.
How It Works
The stock market's value is always rising and falling. Sometimes, the market will experience short-term gains when nothing has really changed. These increases in value are usually caused by mass optimism on the part of investors anticipating gains. As more investors buy into the trend, the price increases. Once the price is high enough, buying slows, and some investors begin to sell to lock in their gains. This decrease in price, following a short-term increase, is called a correction.
For example, suppose there is a stock XYZ that is currently valued at $80. Anticipating gains, investors continue to purchase XYZ, and the price of the stock goes up to $100 over the next month. At the end of this month, some investors stop buying the stock at the higher price, and others start selling the stock to lock in their gains. Consequently, the market readjusts and the price of XYZ stock falls to $90 per share. Therefore, XYZ stock has experienced a correction of roughly 10%.
Why It Matters
Corrections are usually tracked once an upswing in market prices has come and gone. A correction in a stock's price following an upswing is indicative of a stock's true market value and may not indicate a loss in value so much as a market's return to stability.
Corrections are a big part of technical analysis. Many investors use indicators to try to determine when the correction will begin and end so that they can buy when prices are lower.
Source: Investing Answers
correction
noun
English Language Learners Definition of correction
See the full definition for correction in the English Language Learners Dictionary
correction
noun
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Kids Definition of correction
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correction
noun